Benefits of Electronic Invoices
There are critical advantages of changing your invoicing system from manual or paper to an electronic one. Most organizations that use the electronic method of invoicing have been able to accrue cuts in their costs. With the current advancement in technology, most organization have found it fit to shift to the electronic invoicing. The benefits that come with the electronic way of invoicing are discussed below.
Firstly, the electronic invoices will lead to a reduction in the carbon footprint. This is because people will change from the use of paper invoices to electronic invoices. Also the transportation of the paper invoices will be cut by a great deal. In turn the trees used in the production of paper will be reduced. Thus, conserving the environment and at the same time leading to a lower carbon footprint. Thus, the electronic invoices are environmental friendly.
In addition, the electronic invoices make the reconciliation of invoices by the suppliers faster and simpler. This is for when the supplier gives his/her customer a lot of goods or commodities within a specified period of time. Thus, the supplier will send different invoices for each supply. The customer finds it fit for him/her to pay once rather than paying for each invoice. Hence he/she will pay the supplier in one cheque for all the supplies. When the supplier uses electronic invoices, it will be very convenient for him/her to reconcile all the payments with his/her invoices.
The third benefit is how the electronic invoices allow for efficiency and effectiveness. This is because the manual invoices or paper invoices always take a longer way to reach the intended person. Therefore, paper invoices may lead to delays in payment. The delays will impact the supplier negative has they will create a shortage in the funds at his/her disposal. In other instances, the manual or paper invoices will lead to other invoices being lost on the way, therefore requiring the supplier to draft new ones. Electronic invoices will remove the risk of the invoices getting lost, this will also lead to payments made on time.
Lastly, electronic invoices can allow for self-service. In the manual invoices the supplier will always confirm receipt of the invoice by the customer once he/she has sent it. After reception of the invoice by the customer, the supplier has to confirm its approval status. The payment date is communicated to the supplier after approval of the invoice. This is a very rigorous process that takes a lot of time. The process can be eliminated by introducing an electronic invoicing system. The electronic invoicing system provides the supplier with an online portal where he/she will be able to follow the progress of his/her invoice.